I've struggled with this for a while now. But, I think I've found all the appropriate settings now.
Project > Properties > Java Build Path
For each source folder, edit Excluded to include the pattern "**/.svn*"
Project > Properties > Java Compiler > Building > Enable project specific settings
Check the box.
Project > Properties > Java Compiler > Building > Output folder > Filtered resources
Add ".svn/" so that it reads "*.launch, .svn/"